New Enterprise Allowance

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  • #39311
    aaron94
    Participant

    Does anyone know if the new enterprise allowance introced in October 2010 is a regarded income or disregarded income.

    #111673
    angyw
    Participant

    A8/2011 it is disregarded income

    New Enterprise Allowance
    1 New Enterprise Allowance (NEA) will provide help and support for Jobseeker’s Allowance (JSA) customers who want to start their own business.
    2 The current JSA self employment support ended on 31 March 2011 although Self-Employment Credit payments that started on that date will continue for the full 16 week period subject to conditionality. These payments continue to be disregarded.
    3 The NEA will be available to people who have been claiming JSA for more than six months. It will provide access to business mentoring and offer financial support.
    4 The financial support from NEA will consist of a weekly allowance payable for up to 26 weeks (worth up to £1,275) and a low cost loan (worth up to £1,000) to help with initial start up costs.
    5 The weekly payment will be payable under Section 2 of the Employment and Training Act, 1973 and as such will be disregarded as income other than earnings (HBR Sch 5 para 13; CTBR Sch 4 para 14) for HB and CTB purposes. As a business asset, there is provision in HB/CTB Regs (HBR Sch 6 para 8; CTBR Sch 5 para 8) to also disregard the loan. It should only be considered when calculating net business profit (HB Reg 38).
    6 We have been trailblazing the NEA in Merseyside since 31 January 2011. The NEA will be rolled out across Great Britain from April, initially throughout the Get Britain Working target areas and then across the rest of Great Britain from autumn this year.
    7 Further information about the NEA can be found on the DWP website at:
    http://www.dwp.gov.uk/adviser/updates/new-enterprise-allowance/
    8 Please direct any queries about this item to GETBRITAINWORKING@DWP.GSI.GOV.UK

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